Pitching to investors is an unavoidable part of securing funding for many businesses. If you’ve got a great idea, it’s your job to sell it to the people with the cash. Your pitch can be instrumental in securing a great financial deal for your enterprise, so it’s essential you make the most of the opportunity. These four elements of a great pitch will help you convey your chosen message and increase your chances of procuring extra funding.
1. Product
The product or service your business provides is its main selling point. If you can convince an investor that your product is in demand and financially viable, you will be one huge step closer to securing funding. Speak briefly about the origins of the product you provide and the market conditions that necessitated the creation of your business. Who desires your product and why would they choose your services over your competitor’s?
A great product is not a worthwhile investment if the market is inundated with similar ones. Do your research and provide tangible facts and figures that illustrate why your product is uniquely positioned to serve a sizeable and healthy customer base. If your product is perfect for the current market, you will instantly seize the attention of potential investors.
2. People
The people behind the product are a vitally important consideration for any prospective investor. Outline your organizational structure and briefly introduce key members of staff by succinctly explaining how their specific experience or knowledge will be beneficial to the success of your enterprise. Only include strictly relevant information about individual staff members. If it isn’t immediately pertinent to the running of your business, it will only serve to bloat your presentation and distract from your message.
Investments are often made in people more than businesses, so it’s important to portray yourself and your staff in the best possible light. The investment pitch is essentially a company-wide interview so be prepared to answer any questions the investors may have about you or anyone else within the organization.
3. Finances
Once you’ve piqued the interest of investors with details of your product and staff, it’s time to reassure them with further information about your strong economic performance. Give details of your fiscal standing paying particular attention to growth patterns and past ROIs. Don’t omit any negative information. Investors will do their own checks should they intend to commit and you risk alienating them and ruining the chance of forming on-going relationships if you omit crucial information.
Investors will want to be reassured that they will see a profit. Provide relevant details of the market and the broader economic environment to demonstrate how your product or service will thrive with their investment. If you can prove that there is definitely room in the market for your product to grow, investors will be more likely to want to commit their own capital. It’s also important to explain how their money will be used and why it will be beneficial.
4. Narrative
Once you’ve compiled a host of compelling facts, revisit your presentation to make it into a cohesive and engaging experience for the potential investors. Focus on the human impact of your product and inject personal anecdotes throughout the presentation. If you can tell a good story while still getting your main points across, the investors will be much more open to your ideas.
Investors get bombarded with requests on a regular basis. Make your pitch stand out by making it an enjoyable experience for everyone involved. Create a narrative and rehearse your lines until you perfect the delivery. Presenting a well-rehearsed and captivating pitch is an easy way to gain an advantage over your competition.
Leave your hardest-hitting and most-persuasive point to the end. Briefly summarize every critical detail of your pitch and finish on the strongest note. If you’ve done your research and taken the time to present your case comprehensively and succinctly, you’ll give yourself the greatest chance of securing funding for your business.
The Fiserv Small Business Index for October 2024, a key economic indicator that measures the health and growth of small businesses across the United...
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